National breaks its election promise on broadband fibre to homes

The National Government’s core $1.5 billion election promise to deliver ultrafast broadband fibre to 75 per cent of New Zealand homes cannot be delivered and it’s time they owned up to it, said Clare Curran, Labour’s communications and IT spokesperson.

“It has been revealed that New Zealanders face an extra cost of between $2000 and $3600 per household to connect to an ultra-fast broadband network. This is despite the National Government’s promise to deliver broadband fibre to 75 per cent of homes at a cost of $1.5billion from government funds and up to a possible equal amount from the private sector.

“However, a recent Treasury Report warns that it will cost between $5.3 billion and $10.4 billion to connect 75 per cent of New Zealand homes with ultrafast broadband fibre.

“This means the National Government simply cannot fulfil its election promise to spend $1.5 billion to achieve this goal,” Clare Curran said.

The report, prepared by Murray Milner, a former Telecom Chief Technology Officer and now respected consultant, says that $1.5b would not be sufficient to connect to 75 per cent of homes even if matching investment from the private sector was forthcoming.

“The report says the combined costs of connecting directly to each home can be expected to lie in the range of $2000 to $3600.

“Who can afford that amount of money, especially at a time of recession?”

“The National Party’s election promise was clear, that it would deliver broadband fibre via a tax-payer funded model to New Zealand homes and not through a hidden cost of up to $4000 per household.”

“Before last year’s election, John Key is quoted as saying:

National has a commitment to investing up to $1.5billion to accelerate the roll-out of ultrafast broadband to 75% of all New Zealanders.

Press release New Zealand National Party 5 November 2008

We have a programme for the roll-out of ultrafast broadband to all businesses, schools and medical facilities and 75 per cent of homes in the next six years.

Daily Post interview 29 July 2008

“This is a spectacular broken promise from this government. The whole telecommunications sector knows it and it’s time the government admitted it,” Clare Curran said.

ENDS

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